Blog

Pay off your student loans: our 3 debt management tips

Your studies are complete, and if everything goes according to plan, you’ll have your diploma in hand in a few months. This is an exciting point in your
life. But the end of an academic career usually goes hand in hand with the beginning of student loan reimbursement. At BLT Lapointe & Associates
Inc., we regularly help clients deal with their student debt. In this article, we’ll give you 3 tips to help you ensure that you’re able to repay your
loans with the least possible impact on your overall financial situation.

A brief overview of student loan repayment in Quebec Normally, once a person finishes their studies, they need to discuss how they’ll pay off their student loan with their financial institution. In Quebec,
there are a number of different options offered to graduates. As a result, some students may choose to start repaying their debt right away, while
others can opt to postpone repayment for up to 6 months. The latter can be an excellent solution for those who are still looking for work after graduation.

During this period of partial exemption, it’s possible to only pay only the interest, or even to pay nothing—the accumulated interest is then added
to your total amount of debt.

Here are our 3 tips to repay your student debt wisely:

1. Budget to determine how much you can afford We can’t state this enough: make a budget—and stick to it. This will go a long way in helping you steer clear of financial difficulties. To
figure out the amount you can afford to repay each month, rigorously keep track of all of your spending (this includes your other debts, if applicable)
and subtract it from your total income.

2. Get informed about government support programs Your income isn’t enough to cover your debt, even if you reduce your expenses? Don’t panic! Learn about the different debt repayment support programs
offered by the provincial government:

3. Minimize interest by paying in full every month Paying only the monthly minimum is a big mistake. Don’t forget that interest (at fixed or variable rates) accumulates slowly. So to avoid wasting
hundreds or even thousands of dollars on interest fees, pay a large enough sum so that you won’t be penalized in the long run.

At BLT Lapointe & Associates Inc., debt management is one of our specialties. From Montreal to Laval and all the surrounding areas, we help our clients
attain financial balance. Make an appointment today.